ECONOMY: Consumers rack up debt at rapid pace

Tribune news servicesCHICAGO TRIBUNE

U.S. consumers piled on debt in September, taking on loans for cars and other items at a rapid pace, the Federal Reserve said Friday.

The Fed said consumer credit outstanding rose a larger-than-expected $15.1 billion, to $1.972 trillion, its biggest gain since January. It marked an acceleration from August's revised $8.8 billion gain and was well ahead of Wall Street expectations of a $5.9 billion increase.

By far, most of the gain came from so-called non-revolving credit--closed-end loans for cars, boats, mobile homes and tuition expenses. That category saw a $12.1 billion rise.

Revolving debt, which tracks credit and charge card usage, posted a $3.0 billion increase in September, almost double the $1.7 billion advance seen in August.

The Fed data helps explain the surge in consumer spending that pushed U.S. economic growth to an eye-popping 7.2 percent annual rate in the third quarter.

The Fed's report does not include real estate loans, such as home mortgages or home equity loans.